Philips Inks Deal To Buy Gemini

7/07/2004 10:15:00 AM Eastern

By: By Jeff Malester

Amsterdam, The Netherlands and Clifton, N.J. — Royal Philips Electronics and accessories maker Gemini Industries have signed an agreement for Philips to acquire Gemini. Financial details of the acquisition have not been disclosed.

Gemini, founded in 1964, supplies accessories for the audio, video, computing, gaming, digital imaging and telephony markets in the United States. It offers 2,500 products, and 2003 gross sales were about $200 million. The company has about 500 employees.

Philips has been a supplier to Gemini for the past 8 years and has licensed its Philips brand to part of Gemini’s product portfolio.

Through the acquisition of Gemini, Philips will significantly grow the peripherals and accessories business activities on a global scale. This acquisition provides Philips and Gemini with an opportunity to broaden Gemini’s scope into Europe, to better serve the global retailers’ needs, and to leverage synergies between the two companies.

In the fast-growing consumer electronics and PC-related accessories market, Gemini has played a leading role in driving the application of “category management,” incorporating product creation, supply and shelf-space management in a single value chain.

“Accessories are one of the fastest growing and higher-margin product categories in consumer electronics today, and represent an increasingly important part of retailers’ operations,” says Frans van Houten, senior VP at Royal Philips Electronics and CEO of Philips Consumer Electronics Business Groups.

“This makes the acquisition of Gemini a perfect fit for Philips, broadening our U.S. distribution strength and adding to our highly successful portfolio of innovative, easy-to-use and award-winning audio/video accessories and PC peripherals at the same time.”

“We look forward to continuing Gemini’s growth as part of Philips’ global organization,” said Michael O’Neal, Gemini’s CEO. “With Philips’ backing — including its industry-leading technologies, excellent product development capabilities and worldwide brand — we will be better positioned to serve our customers and take the business to the next level.”

Subject to regulatory approval, the deal is expected to close in August.